Good news for Savers as Congress has hiked the federal deposit insurance!

Congress has increased the amount of federal deposit insurance to $250,000 per account from $100,000 (that was the previous amount). Clearly, this is an attempt to maintain some calm and stability in financial institutions and provide some reassurance to investors, especially the savers!

However, it is worth noting that this guarantee is only there till the end of 2009!

So, savers with more than $100,000 should not panic and prematurely pull their savings out of bank accounts in case these amounts exceed $100,000!

Great news! Finally there is some comfort in knowing that at least our Certificate of Deposits are going to be safe with the financial institutions. I have sufferred an incredible erosion in value from my 401k plan and mutual funds as well as my home value!